MPs fail to agree on any alternative plan; China signals a return to growth; AstraZeneca strikes $6.9bn deal.

2 April 2019

MPs fail to agree on any alternative plan; China signals a return to growth; AstraZeneca strikes $6.9bn deal.

The Weekly Note is brought to you by the ALPHA: r² discretionary service team.

Market news

Improved sentiment towards global economic growth helped Wall Street to a strong close yesterday, which has had a positive knock-on effect for most European equities this morning. Growth fears eased on Monday following an improvement in certain business climate indicators from the US and China. 
 
China’s manufacturing Purchasing Managers’ Index rose to 50.8 in March, signalling a return to growth and adding weight to officials’ recent declaration that economic momentum remains stable despite visible weakness in February. There is also cautious optimism over China’s trade talks with the US, with Vice Premier Liu He due in Washington this week. 
 
In contrast, there have been reports that the EU’s collective governments are struggling to agree a mandate with which to begin trade talks with Washington. France is expected to object to plans to start negotiating the removal of US-EU industrial tariffs, at a meeting in Brussels on Wednesday. 
 
The frustrations of Brexit, however, have reached another level. Yesterday, MPs failed for the second time to agree on any alternative plan to counter Theresa May’s deal. The cabinet is meeting today to try to decide a way through the bottleneck, but it is, like the House of Commons, deeply divided. It is quite possible that a fourth vote could take place on May’s deal this week, as although it is very unpopular, it is currently without competition. 
 
MPs have control of the Commons again tomorrow, potentially presenting a last chance to manufacture an alternative. In theory, unless parliament passes a deal, the UK will leave the EU unceremoniously next Friday. Chancellor Phillip Hammond has called for his party to compromise, while another Conservative MP resigned last night over the party’s failure to do so thus far. 
 
The British Chamber of Commerce highlighted the effect of such uncertainty on businesses this morning, warning that the number of companies planning to invest in their operations, via physical capital or staff training, has reached its lowest level in eight years. 
 
Finally, ahead of minutes which are due to be released on Thursday, one of the Governing Council members of the ECB commented that future policy will be data-dependent and will remain accommodative for as long as necessary to hit its inflation target. 

 

The Weekly Note has a new look!

Subscribe today and email [email protected] to register your interest, and receive the full Weekly Note in your inbox every Tuesday.

 

Walker Crips
Old Change House
128 Queen Victoria Street
London EC4V 4BJ

020 3100 8000
www.wcgplc.co.uk
[email protected]

 

Important information

This publication is intended to be Walker Crips Investment Management’s own commentary on markets. It is not investment research and should not be construed as an offer or solicitation to buy, sell or trade in any of the investments, sectors or asset classes mentioned. The value of any investment and the income arising from it is not guaranteed and can fall as well as rise, so that you may not get back the amount you originally invested. Past performance is not a reliable indicator of future results. Movements in exchange rates can have an adverse effect on the value, price or income of any non-sterling denominated investment. Nothing in this document constitutes advice to undertake a
transaction, and if you require professional advice you should contact your financial adviser or your usual contact at Walker Crips.

Walker Crips Investment Management Limited is authorised and regulated by the Financial Conduct Authority and is a member of the London Stock Exchange. Registered office: Old Change House, 128 Queen Victoria Street, London, EC4V 4BJ. Registered in England number 4774117.

MPs fail to agree on any alternative plan; China signals a return to growth; AstraZeneca strikes $6.9bn deal.

Important note

No news or research content is a recommendation to deal. It is important to remember that the value of investments and the income from them can go down as well as up, so you could get back less than you invest. If you have any doubts about the suitability of any investment for your circumstances, you should contact your financial advisor.

Walker Crips Investment Management Limited (WCIM) is a member of the London Stock Exchange and is Authorised and Regulated by the Financial Conduct Authority (FCA).

This website is solely for information and private circulation and does not constitute an offer to buy or sell shares in any company mentioned herein. References to Walker Crips refer to Walker Crips Investment Management Limited and/or other companies within Walker Crips Group plc. It is important to remember that the value of investments and the income from them can go down as well as up and investors may not realise the value of the initial investment. Recommendations may or may not be suitable for all recipients of this publication and if you have any doubts you should seek advice from your investment advisor. WCIM cannot accept responsibility for any losses which may be incurred by anyone acting on such recommendations. The value in sterling terms of foreign investments may rise or fall in response to currency fluctuations.

It must be noted that information concerning past performance is not a guide to future performance. In line with the FCA rules on conflicts of interest, investors should be aware that Walker Crips may have actual or potential conflicts of interest that could affect the objectivity and independence of their research. Where such conflicts exist it is Walker Crips’ policy to disclose them publicly. Principals and Associates of WCIM may have held a long term position in some of the stocks or shares mentioned herein. Consequently, in line with FCA Rules on conflicts of interest, WCIM research in these areas cannot be classified as impartial within the FCA’s definition and should not be relied upon as independent or objective. Prices and factual details are deemed to be correct at the time of publication but may change subsequently. The publication has been prepared with all reasonable care and is not knowingly misleading in whole or in part. Expressions of opinion are subject to change without notice.

Investors are strongly advised to consult with their own Broker / Account Executive to discuss risk levels and whether a particular investment is suitable for their financial circumstances.

Opinions expressed by individuals within this website does not necessarily represent the views of the Company.

Please indicate that you agree with the statement below to continue

If you do not agree with the above statement and have questions about our service and products please contact us on 020 3100 8000.

Display disclaimer

Investors should be aware that past performance is not a reliable indicator of future results and that the price of shares and other investments, may fall as well as rise and the amount realised may be less than the original sum invested.


Walker Crips Group plc (Old Change House, 128 Queen Victoria Street, London EC4V 4BJ), registered in England, registered number 1432059, incorporates the following companies which are authorised and regulated by the Financial Conduct Authority: Walker Crips Investment Management Limited registered in England number 4774117 member of the London Stock Exchange, Walker Crips Wealth Management Limited registered in England number 3790291, Ebor Trustees Limited registered in England number 3514268, Barker Poland Asset Management LLP registered in England and Wales number OC341149.